Highlights
Perceptions of broader economic conditions improved slightly in November. The general business activity index posted its second positive reading in a row, and it edged up from 2.3 to 3.2. The company outlook index remained positive but moved down from 7.2 to 4.7. More than 90 percent of manufacturers said their outlooks were unchanged or improved from last month.

However, the production index dipped from 4.1 to minus 5.1, registering its first negative reading in two years. Other measures of current manufacturing conditions also indicated contraction in November. The new orders index suggested deterioration of demand, falling to minus 5.1 from plus 8.3 in October and after a year in positive territory. Eighteen percent of manufacturers noted increased order volumes in November, compared with 23 percent noting a decrease. The shipments index edged down from 2.7 to minus 1.1, suggesting the volume of shipments fell slightly.

Labor market indicators reflected continued labor demand growth, albeit at a slower pace. The employment index came in at 9, down from 15.1 in October. Twenty-one percent of manufacturers reported hiring new workers, while 12 percent reported layoffs. The hours worked index edged up to 7.3 from 7.1 in October.

Selling prices were flat in November, while upward pressure on input prices and wages continued at about the same pace as in October. The finished goods price index remained near zero, and the great majority of respondents noted no change in selling prices.

Expectations regarding future business conditions remained relatively optimistic but not quite as much as in October. The index of future general business activity eased to 9.7 from 14.7 but remained in solid positive territory. The index of future company outlook inched down to 23 from a reading of 25.3 in October.

Market Consensus before announcement
The Dallas Fed general business activity index in October jumped up from minus 14.4 to 2.3, its first positive reading in six months. The production index, however, in October remained positive but edged down from 5.9 to 4.1, suggesting growth slowed slightly. Other measures of current manufacturing conditions also indicated growth in October, and the pace of new orders increased with a reading of 8.3, compared to 3.6 in September. The shipments index fell from 9.4 to 2.7, suggesting shipment volumes continued to increase but at a slower pace.

2011 Released Schedule

Released On: 5/27 6/23 7/21 8/25 9/22 10/27 11/24 12/23 Release For: May Jun Jul Aug Sep Oct Nov Dec